Evergrande Raises $154 Million Paring Stake in Key Bank Unit
- Sold shares in Shengjing Bank to local state-owned enterprises
- Chinese developer is downsizing empire to avoid cash crunch
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China Evergrande Group raised about 1 billion yuan ($154 million) after paring its stake in Shengjing Bank Co., as the real estate conglomerate continues to downsize its sprawling empire to stave off a liquidity crisis.
Evergrande Nan Chang sold about 167 million shares in Shengjing Bank at 6 yuan apiece, the same as its purchase price in 2019, to two state-backed units of northeastern Shenyang city, the Chinese lender said in an exchange filing on Tuesday. It said its board would support key local state-owned enterprises to gradually increase their holdings in batches and “adjust the equity structure to become the bank of the government.”